Question : A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is:
Option 1: $2\frac{1}{2}$%
Option 2: $4$%
Option 3: $5$%
Option 4: $6\frac{2}{3}$%

Question

Question : A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is:

Option 1: $2\frac{1}{2}$%

Option 2: $4$%

Option 3: $5$%

Option 4: $6\frac{2}{3}$%

Team Careers360 · Accepted Answer

Correct Answer: $5$%

Solution : Given:
A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years.
So, Simple interest for 1 year = 840 − 800 = Rs.40
Simple interest =$\frac{ ext{Principal×Rate×Time}}{100}$
Rate = $\frac{40×100}{800×1}=5$%
Hence, the correct answer is $5$%.

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Question : A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is:Option 1: 212%Option 2: 4%Option 3: 5%Option 4: 623%

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Question : A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is:
Option 1: $2 \frac{1}{2}$ %
Option 2: $4$ %
Option 3: $5$ %
Option 4: $6 \frac{2}{3}$ %